Wall Street Slips Amid U.S.-China Trade Uncertainty
Scott Bessent confirmed that President Donald Trump will make the final call on whether to extend the current 90-day tariff truce.
Quick overview
- U.S. stocks declined on July 29 due to disappointing consumer confidence data and trade concerns with China.
- The Dow Jones fell 0.5%, the S&P 500 dropped 0.3%, and the Nasdaq Composite decreased by 0.4%.
- Investor focus shifted back to U.S.-China trade tensions following a new trade agreement with the EU.
- U.S. Trade Representative indicated that while negotiations with China are progressing, no breakthrough is imminent.
U.S. stocks turned lower on Tuesday, July 29, as investor sentiment soured following weaker-than-expected consumer confidence data and renewed concerns over trade negotiations between the United States and China.
The three major U.S. indexes ended in negative territory after spending much of the session in the green. The Dow Jones Industrial Average fell 0.5% to 44,632.99 points, the S&P 500 lost 0.3% to 6,374.08, and the Nasdaq Composite declined 0.4% to 21,098.29.
The reversal in market momentum came after the announcement of a new trade agreement between the U.S. and the European Union, which shifted the focus back to unresolved tensions between Washington and Beijing.
U.S.-China Trade Talks Ongoing, but Outlook Remains Unclear
U.S. Trade Representative Jamieson Greer said Tuesday that negotiations with China were “on the right track,” but offered no indication that a breakthrough was near or that the current tariff truce would be extended.
If the pause is not renewed, Chinese imports could soon be subject to steep tariffs reinstated as of April 2, also referred to as Liberation Day tariffs.
Earlier this year, both countries reached preliminary trade arrangements that eased an intensifying tariff war, including mutual cuts in levies and a suspension of critical export restrictions on rare earth materials.
Following two days of high-level meetings in Stockholm, U.S. Treasury Secretary Scott Bessent confirmed that President Donald Trump will make the final call on whether to extend the current 90-day tariff truce.
Greer added that another round of talks is likely in roughly 90 days, depending on Trump’s decision. “We’ll brief him on the process. The meetings have been constructive, and we aim to present a positive report—but ultimately, the decision rests with the President,” he stated.
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